As the declining population has become a fact of life, the transportation and logistics sectors are facing harsh challenges such as stagnation of the domestic market, globalization of economy, and deregulation on the global scale.
The biggest issues for transportation and logistics operators who are very much dependent on domestic demand as an earnings base are to fight against the curtailment of the domestic market and capture vitality of emerging countries, Asia, and other thriving countries in the world. It is essential to develop or switch from traditional Japanese business models as the government promotes deregulation and other reforms in the Japanese market.
NRI supports private transportation, logistics firms, and government offices that design policies and systems, in formulation, with the implementation and establishment of strategies to promote business model reforms to match the new environment.
Restructuring of the Transportation and Logistics Industries
Major industry changes are steadily brought about in the transportation and logistic industries such as progress of airline liberalization, the rise of LCCs, and intense competition among airlines, railways, and highway buses over high-speed transportation services, leading to evolution of the industries.
Meanwhile, leading manufacturers in the world are further deepening and expanding SCM. In order to respond to such trends, the logistics industry also promotes restructuring beyond the boundaries of business types and categories.
NRI provides consistent support from formulation and execution to establishment of strategies through creation of growth strategies, support for M&As and company acquisition, and restructuring of business and organization structure in the fields of transportation and logistics.
Airport Infrastructure PFI
As a part of Japan's national growth strategy, the concession system is gradually introduced where the right of operating public facilities (such as airports) is given to private business operators. Airport infrastructure is a new business opportunity for the transportation and logistics industries. Entry of private business operators are expected in the airports directly managed by the government (government administration airports) through the use of the concession system.
NRI provides consistent support for private operators in the evaluation of business feasibility, risk analysis, formulation of alliance strategies, etc. to achieve their entry into the airport businesses.
Overseas expansion of transportation and logistics companies
In ever-growing Asia and emerging countries, improvement of social infrastructures such as railways, airports, harbors, and roads are left behind in comparison with their economic growth. Although improvement in infrastructures in these countries is a matter of urgency, it would take an enormous budget. Accordingly, PPP has been gradually introduced to use private operators as a means of funding.
NRI supports overseas business expansion including formulation of business models and strategies of alliances with local partners based on the results of studies, with a perspective of PPP, on the transportation, logistic, and accompanying businesses in Asia and emerging countries.
Please feel free to contact us for management consultation or any other questions about our consultation services.
Representative Department: Consulting Division